The ongoing conflict between Iran and the United States, particularly the closure of the Strait of Hormuz, has severely disrupted energy supplies in India, affecting both crude oil and natural gas availability. In response, several Indian firms are invoking 'force majeure' clauses in their contracts to temporarily suspend or delay their contractual obligations. This provision is particularly crucial for small businesses facing significant disruptions due to raw material shortages and supply chain breakdowns, as it helps them avoid penalties. Force majeure clauses protect parties from liability when unforeseen events, such as wars or natural disasters, prevent them from fulfilling their contractual duties. However, the successful invocation of this clause depends on the specific wording of the contract and the circumstances of the disruption. Additionally, the impact of the US-Iran conflict is reflected in India's manufacturing sector, which has recorded its slowest expansion in over three years, as indicated by the latest HSBC Purchasing Managers' Index (PMI) survey, highlighting a loss of economic momentum amid rising inflation and decreased domestic demand.